It’s been said that “nothing changes if nothing changes.” Change is an important part of life. It helps to keep life interesting. As I embark on this new journey in my life, I’ve noticed a small change here and there. Changes in terms of what I choose to prioritize or even how I choose to spend my money. Thankfully, even though life is ever changing, the one constant has been my dividend portfolio which keeps working for me in the background. Every month, I look forward to writing this post because I get excited to see how my dividends performed. Did I break any records or reached a new milestone? Or is the income I expect to receive less than what I was expecting? Let’s break down September to take a look.
Dividend Income
In September I received a total of $111.15 in dividends broken down as follows:
| NO. | STOCK | NAME | DIVIDENDS |
| 1 | EMR | Emerson Electric | $10.53 |
| 2 | GWW | W.W. Grainger | $6.87 |
| 3 | JNJ | Johnson & Johnson | $20.09 |
| 4 | MCD | McDonalds | $9.42 |
| 5 | MMM | 3M Company | $10.12 |
| 6 | O | Realty Income | $8.43 |
| 7 | PFE | Pfizer | $12.22 |
| 8 | XOM | Exxon Mobile | $33.47 |
| $111.15 |
Yes! As you can see, I crossed over the $100 mark for the first time in this quarter, and for the second month in a row. Sufficed to say I’m very placed. Talk about change, this is definitely a good thing. Now, I can expect to see triple-digit months on a more regular basis. The months of January, April, July, and October are somewhat far behind in terms of dividend income received. But, once those months catch up, I will be consistently making over $100 per month in dividends. So far, I am on the right track.
You will notice that the dividend income received for McDonalds is $9.42. The dividends were received in September, but it was difficult for me to tell that with M1 Finance because it showed up in my October 1, 2018 activity section. I called and verified that I did receive the dividends in September. However, at the time, only 0.04 cents was sitting in my portfolio. When I received the dividends, that brought the balance up to $9.46, which was below the $10 minimum threshold to make the automatic purchase with M1 Finance. That didn’t happen until October 1, 2018. I was initially concerned that there was inaccuracy in the reporting, but it turns out that everything is ok. My statement will accurately reflect when I received the dividends.
Once the dividends I receive from each company is at least $10, I will no longer have that problem.
Annual Comparison
Below is a graphical representation of my dividends this year as compared to last:
Here is the raw data:
| MONTH | 2017 | 2018 | Rate |
| April | $0.41 | $31.47 | 7575.61% |
| May | $2.85 | $79.33 | 2683.51% |
| June | $16.89 | $98.51 | 483.24% |
| July | $5.99 | $42.32 | 606.51% |
| August | $21.95 | $108.44 | 394.03% |
| September | $28.72 | $111.15 | 287.01% |
My portfolio increased a respectable $287.01% from last year. I continue to look forward to decent growth rates in the months to come. Although the growth rate will be significantly smaller as I work with larger numbers, I do plan on increasing the minimum contributions to my portfolio annually. That, combined with dividend income, will help my dividend portfolio snowball faster.
Finally, the Dividend Tracker has been updated accordingly.
Forward Annual Dividends
At the time of this writing, my forward annual dividend is $1,150.16. A month ago, my forward annual dividend projection was $1,105.65. This represents an increase of $44.61 or 4% in my forward annual dividend income. This is a slightly larger increase than the previous month.
Financial Update – Lifestyle Change
I talked briefly about lifestyle creep in my last post and it’s something that I’m keeping a watchful eye on. In addition, I hope to increase the minimum contribution to my dividend portfolio as I go forward. However, I have other priorities right now which includes getting out of consumer debt, which is taking longer than expected.
There is a decent chance that I will cut back on the use of my credit card. I was using my new card religiously in the name of racking up points. But, what that does is that I have to use my earned income to pay back the credit card, which leaves very little to pay down on other debt. By using the credit card, I think I spend more than I otherwise would if the money was coming from my checking account or paid with cash.
I’ve also noticed that my other new credit card (the American Express) is only used to pay for Uber rides. I get $15 free Uber every month so I think it’s worthwhile to have. My Chase Sapphire Reserve card I use for eating out because I get 3 times the points for that, and I eat out every day. But, as I mentioned, I spend way too much using the credit card. So, I’m going to find a purpose for the Chase card like I do for the American Express Card. Maybe I’ll use it for Starbucks.
The consequence of opening up my new cards and not paying down my balance is a whopping reduction in my credit score. That’s not good because I’m still planning on buying a house. My score went from 800 down to 740, or from excellent to good. It’s now right around 750, so technically excellent, but I would prefer it to be back up to 800. I’m not sure if getting the credit cards were worth it, but once I start redeeming points, I might feel better.
I’ll keep you posted.
Conclusion
It’s a great feeling to know that my dividend portfolio is hard at work for me in the background while I deal with the current changes in my life. My transition to my new job at work is well underway. But, that transition has brought some unpredictability in my life in terms of my income and expenses. But change can be a good thing and I welcome this new phase of my life.
I’m very excited about crossing the 3-digit mark for the second month in a row. I can’t wait to get to that point where my consumer debt is gone, and I’m able to contribute two-to-three thousand dollars per month in my portfolio. I expect to wipe out my consumer debt by the end of October or, if not, definitely in November. But, as the saying goes, patience is a virtue. The good news is that I am moving in the right direction.
How was September for you? Break any records? Let me know your thoughts by commenting below.
Look at you go DP! Another 3digit month is just plain awesome. Great to see you trending upwards and I like the positive vibe coming from this post. Keep it up!
I didn’t break any records but i did have solid results and growth.
Mr. Robot recently posted…September 2018 dividend report
I will definitely check out your report soon Mr. Robot. I’m glad I’m trending upwards as well.
Amazing portfolio and amazing display of discipline!! Your journey continues to feed me motivation to continue my journey as well. I have a portfolio value of $30,776.00 currently with expected annual dividends of $1,227.00. I find that the most difficult thing to obtain (other than extra money to invest lol) is to have a somewhat balanced amount of dividends paid each month. Currently I have some months as high as $166 and some months as low as $42. As i continue to drip and add money to the portfolio I suspect this will level off at some point, but still quite cumbersome to balance early on.
Definitely a fair point. Don’t forget that you might also add additional stocks to your portfolio which may help even things out. It’s nice to know we have a similarly sized portfolio. Hopefully, one day we will both be able to achieve the financial freedom we desire.
Congrats on your record three-digit Month!!!! Yet another great milestone achieved! It is great to also see a triple digit YOY as well! I like where this is going! 🙂 Keep it up DP! 😀
My Dividend Dynasty recently posted…September 2018 Dividend Income
Yup, seeing triple digits is a cool thing to look at. I’ll take triple digit YOY growth any day of the week!
Hi DP,
Congrats on hitting the $100 milestone one more time. And the growth for all the months this year compared to last year is astonishing! I wish I could grow my portfolio this fast. And it looks like you still have some reserves as you are implementing those changes in your life. It’s nice to see that you are staying true and admitting that there are some areas in your life that could be improved. I recently started reading a book called “The power of habit” by Charles Duhigg, I thought it might be interesting for you to have a look as well 🙂 I only started reading it so I cannot say if it is definitely good but I think it’s worth a look.
BI
Looking forward to hearing your review of the book BI. I might just check it out myself. I know the month just started, but one of the cool things about it is that I have been very conscientious about cutting back my spending. I’m still spending a lot but not as much as the previous month. My reserves will likely kick in this month or next in which case my debt will be wiped clean, my starter emergency fund fully funded and I will mainly focus on saving for a downpayment. $15000 is the number I think I need for a down payment, but about $25000 will be a good number to have for both the down payment and closing cost before I buy the next house. So, I should have my financial house in order to start saving in earnest by mid-November. I expect the only debt I will have are my car and student loans.
Awesome work DP, and love seeing those triple digit months! That triple digit YoY growth is amazing as well and a true testament to the work you’ve been putting in. Keep working your plan and these triple digit months will be the norm.
DivvyDad recently posted…Dividend Income Report :: September 2018
Can’t wait for that to happen DivvyDad.
Good stuff buddy – two months in a row of $100+ is pretty great!
timeinthemarket recently posted…Time in the Market Dividend Review – September 2018 – Late Dividends
Yup, can’t wait until it reaches 3 months in a row.
Look at you go Dividend Portfolio. I love your growth in dividend income and the chart that you have to visualize your growth. It is truly impressive. I’m just pumped that you should be in the $100/month club for a long time going forward now that you eclipsed that mark. I wouldn’t be too concerned about the credit card and slight dip in credit score. It’ll happen when you open new credit and watch balances soar. You have the right approach and mindset. You’ll be close to 800 again soon before you know it.
Bert
Dividend Diplomats recently posted…Bert’s October Dividend Stock Watch List
Can’t wait to get to the point where I’m closer to 800 or even at 800. I’m sure once I clean up the cards, it will help. As I consistently contribute to my dividend portfolio, I’m pretty sure that I will consistently be in the $100 per month club. But, as they say, patience is a virtue.
Congrats on the record month my friend! Those are some serious growth numbers all year. I am at the point of seeing consistent triple digit months as well besides the ones on the January cycle. Not too many companies pay out in those months and I haven’t been able to find opportunities to add to my existing positions there. In due time I am sure. Looking forward to seeing how you do the rest of the year.
Dividend Daze recently posted…Dividend Update – May 2018
Glad to see you’re almost there as well (consistently speaking). The triple-digit club is a great place to be.
That’s a new record in dividend income – congrats!
Thanks Torsten
Wow +1k USD annual dividend income. Your way ahead of me with my somewhat stuck 400€ income mark. Good luck with your get out of debt plan 🙂 As you said things are done by doing 🙂
Thanks for the encouragement P2035. Good luck to you as well. As long as we are moving in the right direction, it’s all good.
Hey Dividend Portfolio – nice work! We have similar account. Balances and dividend income—- I just broke. The $1k divs a year mark also with 2 months to spare! I think it’s interesting that we have very different portfolios (only share T). But there are some you own on my watchlist. Keep up the good work!
Thanks. It’s always great to meet someone with a similarly sized portfolio. Congrats on your recent milestone D4J.